Problem 2.3 Let the consumer's preferences over consumption bundles (x1, x2) be representedby the utility functionu(x1,X2) = /x1 +1·(x2+1).Which of the following statements is correct?(a) The utility function v,(x1,x,) = In(x, + 1) + 3 ln(x, + 1) also represents the consumer'spreferences.(b) The utility function v,(x1,x2) = In(x1 + 1) + In(x2 + 1)² also represents the consumer'spreferences.(c) None of the statements is correct.

Utility function describes the level of satisfaction a consumer can get from the consumption of…

Problem 2.3 Let the consumer's preferences over consumption bundles (x1,x2) be represented by the utility function u(x1, x2) = /x, +1· (x2 + 1). Which of the following statements is correct? (a) The utility function v,(x1,x2) = In(x, + 1) + 3 In(x2 + 1) also represents the consumer's preferences. (b) The utility function v,(x1,x,) = In(x1 + 1) + In(x2 + 1) also represents the consumer's preferences. (c) None of the statements is correct.

Problem 2.3 Let the consumer's preferences over consumption bundles (x1,x2) be represented by the utility function u(x1, x2) = /x, +1· (x2 + 1). Which of the following statements is correct? (a) The utility function v,(x1,x2) = In(x, + 1) + 3 In(x2 + 1) also represents the consumer's preferences. (b) The utility function v,(x1,x,) = In(x1 + 1) + In(x2 + 1) also represents the consumer's preferences. (c) None of the statements is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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